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Dollar steady vs. euro as central banks, U.S. data eyed

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Shutterstock photo - The dollar was little changed against the euro and pushed higher against the yen on Wednesday as investors eyed policy meetings by the Bank of Japan, European Central Bank and Bank of England on Thursday and Friday's U.S. data on nonfarm payrolls.

During European morning trade, the dollar was ticking up and down between small gains and losses against the euro, with EUR/USD dipping 0.02% to 1.3048.

Worries over the outlook for Italy, the euro zone's third largest economy, fuelled speculation over a possible rate cut by the ECB in the coming months.

Concerns over political uncertainty in Italy continued amid reports that Italian President Giorgio Napolitano is considering appointing a technocratic government after elections last month ended in a stalemate.

The dollar hit session highs against the pound, with GBP/USD down 0.25% to 1.5088.

Sterling came under pressure ahead of the outcome of the BoE's policy meeting on Thursday, amid speculation over whether the bank will resume its asset purchase program.

Elsewhere, the dollar was higher against the yen, with USD/JPY rising 0.17% to 93.44 ahead of the conclusion of the BoJ's policy meeting on Thursday.

The BoJ was not widely expected to announce any changes to monetary policy, but a change of leadership later this month was expected to result in a move towards more aggressive easing measures, aimed at combating deflation.

The greenback was also higher against the Swiss franc with USD/CHF climbing 0.32% to 0.9438.

The greenback was treading in narrow ranges against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.12% to 1.0282, AUD/USD easing up 0.11% to 1.0267 and NZD/USD inching up 0.07% to 0.8315.

The Australian dollar hit session highs earlier after official data showed that the country's economy expanded 0.6% in the fourth quarter, in line with expectations, while third quarter growth was revised up to 0.7% from 0.5%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.09% to 82.19.

The euro zone was to release revised data on fourth quarter growth later Wednesday, while the U.S. was to publish a report on ADP nonfarm payrolls and official data on factory orders. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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